Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps the Government is taking to help businesses with off-payroll working rules.

On 17 March 2020, the Government announced that the reform to the off-payroll working rules that would have applied for people contracting their services to large or medium-sized organisations outside the public sector will be delayed for one year from 6 April 2020 until 6 April 2021.

This is part of the additional support for businesses and individuals to deal with the economic impacts of Covid-19. This means that the different rules that exist for inside and outside the public sector will continue to apply until 6 April 2021.

This announcement is a deferral of the introduction of the reforms, not a cancellation. The Government remains committed to introducing this policy to ensure that people working like employees, but through their own limited company, pay broadly the same tax as individuals who are employed directly.

HMRC will continue to work to ensure businesses have the right support to deliver the changes to the off-payroll working rules over the next 12 months.